Lesson 5: Create A Blanket Agreement and A Blanket Purchase Order PR215 Purchasing Process Materials Management Lesson 5: Create A Blanket Agreement and A Blanket Purchase Order Notes: 9/22/2014

Lesson 5 Learning Objectives PR215 Purchasing Process Materials Management Lesson 5 Learning Objectives Upon completion of this Lesson, you should be able to: Find a “Requisition” that has been approved in your SRM’s Perform Sourcing. (Lesson 4) Understand the difference between a Blanket Agreement and a Blanket PO. Determine when and how to apply the appropriate clauses. Create a PO regardless of the Transaction Type with the appropriate clauses. Notes: 9/22/2014

Blanket Agreement and Blanket PO PR215 Purchasing Process Materials Management Blanket Agreement and Blanket PO A Blanket Agreement should be used in accordance with Regulation 19-445.2100 of the SC Consolidated Procurement Code. A Blanket PO should be used in accordance with the Policy for Use of Purchasing/Payment Document Types. A Goods Receipt transaction (MIGO) is optional on Blanket POs. 9/22/2014

Perform Sourcing to Create a Blanket Agreement PR215 Purchasing Process Materials Management Perform Sourcing to Create a Blanket Agreement uPerform Business Process Procedure (BPP) related to this function is available at http://uperform.sc.gov/gm/folder-1.11.3882. SRM PUR Create a Blanket Agreement Exercise 2: Create a Blanket Agreement Helpful Hint: When in Doc Builder, the answer to the Dialog questions are “Yes,” “Yes” to create the “BLANKET PURCHASE AGREEMENT” clauses. Notes: 9/22/2014

Perform Sourcing to Create a Blanket PO PR215 Purchasing Process Materials Management Perform Sourcing to Create a Blanket PO uPerform Business Process Procedure (BPP) related to this function is available at http://uperform.sc.gov/gm/folder-1.11.3882. SRM PUR Create a Blanket Purchase Order Exercise 3: Create a Blanket Purchase Order Helpful Hint: When in Doc Builder, the answer to the Dialog questions are “Yes,” “No” to create the “STANDARD PURCHASE ORDER” clauses for other PO Transaction Types. Notes: 9/22/2014

Lesson 5 Knowledge Check PR215 Purchasing Process Materials Management Lesson 5 Knowledge Check Blanket PO Agreements should be used in accordance with Regulation 19-445.2100 of the SC Consolidated Procurement Code? (True/False) Blanket POs should be used in accordance with the Policy for Use of Purchasing/Payment Document Types? (True/False) Goods Receipt transactions (MIGO) are optional on Blanket POs? (True/False) Notes: T F 9/22/2014

Lesson 5 Summary You should be able to: PR215 Purchasing Process Materials Management Lesson 5 Summary You should be able to: Find a “Requisition” that has been approved in your SRM’s Perform Sourcing. (Lesson 4) Understand the difference between a Blanket Agreement and a Blanket PO. Determine when and how to apply the appropriate clauses. Create a PO, regardless of the Transaction Type, with the appropriate set of clauses. Notes: 9/22/2014

Lesson 6: Create A Framework Purchase Order PR215 Purchasing Process Materials Management Lesson 6: Create A Framework Purchase Order Notes: 9/22/2014

Lesson 6 Learning Objectives PR215 Purchasing Process Materials Management Lesson 6 Learning Objectives Upon completion of this lesson, you should be able to: Understand what makes a Framework PO different from Standard PO, Blanket PO, and Inventory PO. Understand the Framework PO process. Understand where to find the Framework uPerform, SRM PUR Create a Framework Purchase Order Notes: 9/22/2014

Framework PO A Framework PO: PR215 Purchasing Process Materials Management Framework PO A Framework PO: Process begins with the Buyer creating a “Limit Item” Shopping Cart and then creating a Framework PO. Purchasing →Purchasing →Create Documents →Shopping Cart→ Add Item → Limit Item Is not created through the normal SRM Shopping Cart approval and workflow process. Requires a Product Category (5 digit / NIGP code), value limit, a required date, and a supplier number. Does not encumber funds. 9/22/2014

Framework PO A Framework PO: PR215 Purchasing Process Materials Management Framework PO A Framework PO: Does not create an actual Line Item in ECC. The Line Item in ECC is a virtual Line Item. Does not generate any data on the ECC’s “Delivery” tab, as a results the “Delivery Complete” checkbox is not even present in ECC. The Line Item you see in ECC is an aggregate, a composite of tables from the SCEIS “back-end” system. Cannot process a Goods Receipt because of the lack of a real Line Item.  The virtual Line Item prevents any Confirmation/Goods Receipt. 9/22/2014

Framework PO A Framework PO: PR215 Purchasing Process Materials Management Framework PO A Framework PO: Cannot be linked to a contract because of the virtual Line Item. 9/22/2014

PR215 Purchasing Process Materials Management Create a Framework PO uPerform Business Process Procedure (BPP) related to this function is available at http://uperform.sc.gov/gm/folder-1.11.3882. SRM PUR Create a Framework Purchase Order Notes: 9/22/2014

Lesson 6 Knowledge Check PR215 Purchasing Process Materials Management Lesson 6 Knowledge Check Framework POs are created from a Limit Item Shopping Cart? (True/False) A Goods Receipt transaction (MIGO) is mandatory on a Framework PO? (True/False) A Framework PO can be linked to a contract? (True/False) Notes: T F 9/22/2014

Lesson 6 Summary You should now understand: PR215 Purchasing Process Materials Management Lesson 6 Summary You should now understand: What makes a Framework PO different from Standard PO, Blanket PO, and Inventory PO. Understand the Framework PO process. Understand where to find the Framework uPerform, SRM PUR Create a Framework Purchase Order Notes: 9/22/2014

Lesson 7: ADDITIONS to A Purchase Order PR215 Purchasing Process Materials Management Lesson 7: ADDITIONS to A Purchase Order Notes: 9/22/2014

Lesson 7 Learning Objectives PR215 Purchasing Process Materials Management Lesson 7 Learning Objectives Upon completion of this lesson, you should be able to: Understand the following additions to a PO: Add Small Purchase Order Terms and Conditions from Document Builder Add Vendor Text: Header and Line Item Add Internal Note: Header and Line Item Add an Attachment(s) Add Conditions Freight Trade-in This icon will indicate when each participant will need to learn and practice transactions in the SAP Sandbox. 9/22/2014

PR215 Purchasing Process Materials Management Additions to a PO uPerform Business Process Procedures (BPPs) related to this function are available at http://uperform.sc.gov/gm/folder-1.11.3882. SRM PUR Add Small Purchase Order Terms and Conditions SRM PUR Add Vendor Text at Line Item SRM PUR Add Vendor Text at Header SRM PUR Add Internal Note at Line Item SRM PUR Add Internal Note at Header SRM PUR Add Attachment SRM PUR Add Conditions to Purchase Order Notes: 9/22/2014

Lesson 7 Summary You should now be able to add the following to a PO: PR215 Purchasing Process Materials Management Lesson 7 Summary You should now be able to add the following to a PO: Small Purchase Order Terms and Conditions from Document Builder Vendor Text: Header and Line Item Internal Note: Header and Line Item Attachments Conditions Freight Trade-in Notes: 9/22/2014

Lesson 7 Knowledge Check PR215 Purchasing Process Materials Management Lesson 7 Knowledge Check The file name of an Attachment can be no greater than 30 characters? (True/False) After adding Conditions to a PO you must SAVE the document, then click EDIT, and then ORDER the document? (True/False) NIGP Code/Product Category, 96286, Miscellaneous Services: Transportation of Goods and Other Freight Services is a suitable NIGP Code/Product Category to use if Freight is created as a Line Item on a PO? (True/False) Notes: T F 9/22/2014

Lesson 8: Edit a Purchase Order PR215 Purchasing Process Materials Management Lesson 8: Edit a Purchase Order Notes: 9/22/2014

Lesson 8 Learning Objectives PR215 Purchasing Process Materials Management Lesson 8 Learning Objectives Upon completion of this lesson, you should understand how to edit the following fields in a PO: Add a Contract Number. Add an Asset. Add Split Fund Asset. Change NIGP Code Prior to Order. Change Vendor Prior to Order. Delete Purchase Order at Header. Delete Purchase Order at Line Item. This icon will indicate when each participant will need to learn and practice transactions in the SAP Sandbox. 9/22/2014

PR215 Purchasing Process Materials Management Edit a Purchase Order uPerform Business Process Procedures (BPPs) related to this function are available at http://uperform.sc.gov/gm/folder-1.11.3882. SRM PUR Add Contract Number to Purchase Order Prior to Order SRM PUR Add Asset in Purchase Order SRM PUR Add Split Fund Asset SRM PUR Change NIGP Code in Purchase Order Prior to Order SRM PUR Change Supplier in Purchase Order SRM PUR Delete Purchase Order at Header SRM PUR Delete Purchase Order at Line Item Notes: 9/22/2014

PR215 Purchasing Process Materials Management Lesson 8 Summary You should now be able to edit a PO with the following: Add a Contract Number. Add an Asset. Add Split Fund Asset. Change NIGP Code Prior to Order. Change a Vendor Prior to Order. Delete Purchase Order at Header. Delete Purchase Order at Line Item. Notes: 9/22/2014

Lesson 9: MANAGE No FURTHER CONFIRMATION, No further invoice & LoCK PR215 Purchasing Process Materials Management Lesson 9: MANAGE No FURTHER CONFIRMATION, No further invoice & LoCK Notes: 9/22/2014

Lesson 9 Learning Objectives PR215 Purchasing Process Materials Management Lesson 9 Learning Objectives Upon completion of this lesson, you should understand how to manage a line item for No Further Confirmation, No Further Invoice and Lock, and the effect to ECC. Process a line item for No Further Confirmation, No Further Invoice and/or Lock. Use the ME23N folder to verify that the transaction produced the desired results. Use the Commitment & Funds Display folder to review any encumbrance. Determine if a line item has been marked No Further Confirmation, No Further Invoice and/or Locked. This icon will indicate when each participant will need to learn and practice transactions in the SAP Sandbox. 9/22/2014

Manage No Further Confirmation and No Further Invoice PR215 Purchasing Process Materials Management Manage No Further Confirmation and No Further Invoice These two procedures can be found by clicking the Items tab then clicking the Related Documents tab. 9/22/2014

Manage No Further Confirmation and No Further Invoice PR215 Purchasing Process Materials Management Manage No Further Confirmation and No Further Invoice No Further Confirmation (NFC): This means that no additional Goods Receipts are expected for the line item. Although a further delivery is not expected, it is still possible. NFC does not lock the line item. No Further Invoice (NFI): Selecting the NFI button in SRM will only unencumber the funds and set the “Final Invoice” indicator in ECC. NFI does not lock the line item. This icon will indicate when each participant will need to learn and practice transactions in the SAP Sandbox. 9/22/2014

Manage No Further Confirmation and No Further Invoice PR215 Purchasing Process Materials Management Manage No Further Confirmation and No Further Invoice The No radio button is the default for both No Further Confirmation and No Further Invoice. This means that the transactions are not active. To activate either No Further Confirmation or No Further Invoice, click the Yes radio button. There will be a yellow message to indicate that the PO has an item or items that have been marked No Further Confirmation or No Further Invoice: This icon will indicate when each participant will need to learn and practice transactions in the SAP Sandbox. 9/22/2014

Verify No Further Confirmation and No Further Invoice PR215 Purchasing Process Materials Management Verify No Further Confirmation and No Further Invoice No Further Confirmation To verify that the line has been marked No Further Confirmation or No Further Invoice, use the ME23N folder. This procedure will activate the ECC Delivery Complete indicator in the line item indicating in the system that No Further Confirmations are expected. 9/22/2014

Verify No Further Confirmation and No Further Invoice PR215 Purchasing Process Materials Management Verify No Further Confirmation and No Further Invoice No Further Invoice To verify the No Further Invoice has reduced the PO Encumbrance use the Commitment & Funds Display folder. This procedure will activate the ECC Final Invoice Indicator, which will unencumber funds. 9/22/2014

PR215 Purchasing Process Materials Management Lock a PO Line Item The “Lock Line Item” status is accessible in the PO under the “General Data” tab by clicking on the “Items” tab, then the “Details” button. When a PO line item has been locked users will see the following warning message: 9/22/2014

Lock a PO Line Item PR215 Purchasing Process Materials Management 9/22/2014

PR215 Purchasing Process Materials Management Lock a PO Line Item Only when a buyer checks the “Lock Line Item” checkbox will the system prevent no further goods receipts and no further invoice payments in ECC on the line item selected. The lock will allow changes to be made to the PO in SRM, but these changes will not transfer to ECC until the “Lock Line Item” has been unselected. 9/22/2014

Manage No Further Confirmation, No Further Invoice and Lock PR215 Purchasing Process Materials Management Manage No Further Confirmation, No Further Invoice and Lock The following Business Process Procedures detailing the changes were made available on August 29, 2014 on the SCEIS uPerform site at http://uperform.sc.gov/gm/folder-1.11.3882 : SRM PUR Line Item Lock on Purchase Order SRM PUR No Further Invoice on Purchase Order SRM PUR Display Locked Purchase Order Line Item Notes: 9/22/2014

Manage No Further Confirmation, No Further Invoice and Lock PR215 Purchasing Process Materials Management Manage No Further Confirmation, No Further Invoice and Lock Prior to this modification, if a user selected either “No Further Confirmation” or “No Further Invoice” to a line item of a PO, the system placed a “Lock” icon on the ECC PO line item. This action may have been premature if the invoice had not yet been keyed. This premature action could then cause the Accounts Payable staff to contact the buyer to have the PO line item “unlocked.” This modification will make the system more efficient and eliminate the need for the buyer to unlock the line item. 9/22/2014

PR215 Purchasing Process Materials Management Lesson 9 Summary You should now be able to edit a PO with the following: Manage No Further Confirmation, No Further Invoice and Lock Use the ME23N folder to verify that the transaction produced the desired results Use Commitment & Funds Display folder to review encumbrance Determine if a line or lines in a PO have been marked No Further Confirmation, No Further Invoice and/or Locked Notes: 9/22/2014

Lesson 10: Create a Standard Purchase Order with Retention PR215 Purchasing Process Materials Management Lesson 10: Create a Standard Purchase Order with Retention Notes: 9/22/2014

Lesson 10 Learning Objectives PR215 Purchasing Process Materials Management Lesson 10 Learning Objectives Upon completion of this lesson, you should be able to: Understand and create Retention at the Header Level. Understand and create Retention at the Line Item Level. Notes: 9/22/2014

PR215 Purchasing Process Materials Management Demo uPerform Business Process Procedures (BPPs) related to this function are available at http://uperform.sc.gov/gm/folder-1.11.3882. SRM PUR Create Purchase Order with Retention at Header Level SRM PUR Create Purchase Order with Retention at Item Level Notes: 9/22/2014

Lesson 10 Summary You should now be able to: PR215 Purchasing Process Materials Management Lesson 10 Summary You should now be able to: Create a PO with Retention at the Header Level. Create a PO with Retention at the Line Item Level. Notes: 9/22/2014

Lesson 11: Create an Inventory Purchase Order PR215 Purchasing Process Materials Management Lesson 11: Create an Inventory Purchase Order Notes: 9/22/2014

Lesson 11 Learning Objectives PR215 Purchasing Process Materials Management Lesson 11 Learning Objectives Upon completion of this lesson, you should understand: The process flow of an Inventory Purchase Requisition to an Inventory PO. How to display PO tracking. Notes: 9/22/2014

Replenishment of Inventory – Process Flow PR215 Purchasing Process Materials Management Replenishment of Inventory – Process Flow No change for the Inventory Staff The Material Requirements Planning Controller (MRP Controller) will initiate the Purchase Requisition (PR) and the system converts the PR into a Shopping Cart. No change for the Buyer Once a Shopping Cart is in SRM you will follow the process to Find/Display a Shopping Cart and Create a Purchase Order. The Transaction Type will still be Inventory PO, ZINV. 9/22/2014

PR215 Purchasing Process Materials Management PO Tracking In the Tracking tab, you can see that the “Back-End Document Number” column reflects the Purchase Requisition number created in ECC (10021806), which is then converted into a Shopping Cart Number, 2000487461. Notes: 9/22/2014

Lesson 11 Summary You should now understand: PR215 Purchasing Process Materials Management Lesson 11 Summary You should now understand: The process flow of an Inventory Purchase Requisition to an Inventory PO. How to display PO tracking. Notes: 9/22/2014

COURSE SUMMARY PR215 Purchasing Process Materials Management Notes: 9/22/2014

Course Summary You should now be able to: PR215 Purchasing Process Materials Management Course Summary You should now be able to: Navigate in Supplier Relationship Management (SRM) 7.2 and understand key terms and concepts. Understand the SCEIS SRM 7.2 purchasing process. Understand Transaction Types and Document Numbers in SRM. Redistribute Workload. Create various Purchase Order Transaction Types with the appropriate clauses. Notes: 9/22/2014

Course Summary cont. You should now be able to: PR215 Purchasing Process Materials Management Course Summary cont. You should now be able to: Make Additions to and edit a Purchase Order. Print a Purchase Order. Understand Extended Purchase Order History. Create a Standard Purchase Order with Retention at the Header Level and Line Item Level. Notes: 9/22/2014

Course Knowledge Check PR215 Purchasing Process Materials Management Course Knowledge Check Complete the following statement: Additional Text can be added to the Purchase Order? a. At the Line Item Level b. At the Header Level c. Both (a) and (b) Notes: C. 9/22/2014

Course Knowledge Check cont. PR215 Purchasing Process Materials Management Course Knowledge Check cont. How do you determine whether a Goods Receipt has occurred against a Purchase Order? Email your agency’s finance department with “Return Receipt Requested” and wait for a response. b. Call the end user and ask them if they have the packing list. c. Look under the Tracking tab on the Purchase Order. Notes: C 9/22/2014

Course Knowledge Check cont. PR215 Purchasing Process Materials Management Course Knowledge Check cont. Which of the following is correct for vehicle purchases? (A/B) A. Tax needs to be created as a separate Line Item on the Purchase Order for $300.00. B. Tax needs to be indicated on the Line Item as taxable by selecting Tax Code/Amount “I1 – A/P Sales Tax” under “Items” and “General Data” tabs. Notes: A. 9/22/2014

Course Knowledge Check cont. PR215 Purchasing Process Materials Management Course Knowledge Check cont. Which of the following is correct when adding freight charges to the Purchase Order? (A/B) Add freight as a “Condition” in the Purchase Order “Prices and Conditions” tab. Select NIGP Code/Product Category, 96286 (Miscellaneous Services: Transportation of Goods and Other Freight Services) as a suitable NIGP Code/Product Category to use if Freight is created as a Line Item on a Purchase Order. Notes: B. 9/22/2014

Course Knowledge Check cont. PR215 Purchasing Process Materials Management Course Knowledge Check cont. Complete the following statement: It is a good idea to process the Open Encumbrance Report monthly because: a. This will give you an idea of POs that may need to be expedited, deleted, or marked “No Further Confirmation” and “No Further Invoice.” b. You may have Goods Receipts that have not been invoiced causing late payments to the vendors. c. You can see the POs that need your attention regarding coordination with the ultimate user, the Supplier and PO Process Management (For example: processing Good Receipts, No Further Confirmations, No Further Invoicing or deleting). d. All of the above. Notes: A. 9/22/2014

Any Questions? PR215 Purchasing Process Materials Management Notes: 9/22/2014

Next Steps Go to the SCEIS uPerform website at http://uperform.sc.gov. PR215 Purchasing Process Materials Management Next Steps Go to the SCEIS uPerform website at http://uperform.sc.gov. Click Business Process Procedures (BPPs) then Supplier Relationship Management (SRM) to view step-by-step instructions and examples related to this course. Or, click Courses to view the Participant Guide and other handouts related to this course. View the CG Policy on the Use of Purchase Orders and Direct Expenditures at http://www.cg.sc.gov. View MMO’s Procurement Services at http://procurement.sc.gov/PS/PS-index.phtm. Notes: 9/22/2014

Please complete the online course evaluation in Blackboard. PR215 Purchasing Process Materials Management Evaluation Please complete the online course evaluation in Blackboard. Your input will help to shape future enhancements to the SCEIS End User Training Program Notes: Go to the SCEIS website http://www.sceis.sc.gov click on Training and then click Blackboard 9/22/2014